The strategy of running promotions by selling gift codes combined with discounts is very simple, yet it can be very powerful for any app that allows in-app purchases.

You can use this strategy to your advantage as not many apps are using it, and only want to sell what they sell for the full price. This fact makes this strategy even more powerful because most users will respond very favourably to it.

There are many reasons why you want to use discount gift codes. Gift codes are what their title says they are. They are codes that your users can give to their friends and family members as gifts. When your users have an incentive to purchase such codes, they will buy and send more of them to their friends. This will allow you to get more users and buyers for your app.

Surveys show that in over 90% of cases when a person uses a gift code, he or she spends more than the face value of the code. About 40% of the people would spend double the value of the gift code that they received.

You may be surprised to find that 18% of all the gift codes and certificates never get redeemed. This means that you can discount any gift promotions that you are running by 18% and by doing so, you will be breaking even. However, to your customers, 18% or 20% will look like a significant discount and a strong incentive to buy gift codes and gift certificates from you.

One of best times to use gift codes is right before your slow season. For example, if your slow season is right after Christmas, you may want to run a promotion for your current users right before Christmas. This way your users will send the gift codes to their friends and family on Christmas and you will get a spike in traffic during the otherwise slow season.